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Time Scalping - Strategy Rules

Friday, 18 August 2017 17:30

Time scalping is a trading strategy for the Forex market. It involves the intraday trading and is best for the binary options. The profit grows due to a large number of transactions with small investments in each order. Such an approach combines a good profit and simplicity, which is useful even for novice market participants.

Strategy Basics

You should open the transactions in the direction of the trend, so it’s quite important to identify it correctly. You can use different technical indicators. It’s better to go for long time frames rather than trading on the shorter ones.

If you see an uptrend, you should open a buy order (CALL). If there is a downtrend, then set the sale order (PUT).

Several orders are opened at once in the direction of the trend, with the execution within 10-15 minutes. The value of each order should be minimal, and the number of the orders should be highest. A new order should be placed a few seconds before the expiration of the past. If you always follow such a rule, then you will surely win, as all of your transactions will follow the trend exactly. This approach allows you to earn, even if the deal closed with a loss.

For this strategy, tools with a high level of volatility are suited best.

Increasing the Profit

To increase the profit of such a trading strategy, a trader should stick to the rules of the money management. If you want to reduce the risks, then adhere to the following rule: don’t open the transactions more than by 10% of your capital. Moreover, the strategy itself implies the small amounts for a single transaction.

When identifying the trend, it’s better to use the indications of several tools (at least two technical tools). When you receive a positive signal of the trend indicator, check the other one. Open a deal only if the data of different instruments confirm each other.

Advantages and Disadvantages of the Time Scalping

The main advantage of such a tactic is the simplicity, so even the beginners can use it. It’s also worth noting that this scalping type is suitable for trading on any kinds of markets, and with any assets.

However, the technique described has certain drawbacks, which you should keep in mind. First, for a successful trade, it’s necessary to open a lot of transactions, which requires a lot of effort and attention. During such a trade, you can get tired, and accidentally open a wrong order. For such a reason, the scalping users suggest making the regular breaks in the trading process.

Summary

This technique shows good results and can be useful for both beginners and experienced traders. You don’t need a big deposit to get a substantial profit. You should prepare for a long, continuous work. However, any methods of scalping are relatively time-consuming.

To get started, we recommend you to find the appropriate trend search indicators and test them on a demo account.

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Matthew Pope

Financial adviser, trader. I have been working in Forex market for 7 years, 4 of which I trade. I analyze the market, develop trading strategies, do lectures and webinars